The most frequently used application for virtual data rooms is due diligence during M&A transactions, however they can also be useful for any project in which an organization needs to share private information with third parties. Whether it is for legal compliance, certification, investments or simply sharing information with partners, the right VDR will facilitate the process without exposing a firm to any potential security breaches or compromises.
The best virtual datarooms offer advanced features for collaboration and tracking that make the whole process more efficient. They include tools for document annotation, Q&A sections and the ability to assign tasks. Many providers offer multilingual and in-app support, which is vital for teams which are geographically dispersed yet working together on projects.
Another crucial feature is the ability to restrict access. This can be achieved by giving users granular permissions on the document and folder levels. This features and functions of virtual data room lets them choose what files they want to view and where they should look. This is important as sensitive information can be viewed on different devices, ranging from computers to smartphones. All of these devices are protected by enterprise-grade security in the best virtual data rooms.
A good virtual dataroom will also come with a suite of reporting and analytics tools that will enable administrators to monitor all activities within the room. This could be anything from the number of documents looked at to who made what changes to the file. This ensures that sensitive data is protected even after the dataroom has been closed.